The White Mountain Apache Community
Development Corporation (CDC) was organized in 1981, and chartered under
the laws of the White Mountain Apache Tribe, as a non-profit charitable
corporation pursuant to Section 501(c)(3) of the Internal Revenue Code. It
has been in existence for over 18 years and operates with its own Board of
Directors, independent of the Tribe. The Board of Directors of the CDC are
appointed by the Tribal Council, however, CDC receives no funding from the
Tribe. Its purpose is to serve the comprehensive community development
needs of the White Mountain Apache Reservation as spelled out in its
Articles of Incorporation, some of which are as
follows:

* Erect and maintain public
buildings for the general benefit of the White Mountain
Apaches.

* Provide safe, decent and
affordable housing for members of the White Mountain Apache
Tribe.

* Lesson neighborhood tensions
and combat community deterioration and juvenile delinquency through
youth programs, programs for the elderly and programs for family
relief.

Through its non-profit status, CDC
received donations from leaseholders at Hawley Lake when their leases
expired. There were approximately 275 homesite leases at Hawley Lake on a
25 year lease. These leases began to expire in 1982 and the last remaining
lease expired in September 2001. Upon expiration of the lease, the
homeowner was given the options of either moving the cabin to another site
off the reservation, abandoning the cabin or donating it to CDC for a tax
deduction. Several of the cabins were seriously damaged by disgruntled
homeowners and abandoned upon expiration of the lease , some were moved
and some were donated to CDC. In 1991, after receiving approximately 10
cabins, CDC had no operating funds so it borrowed $25,000 from the Tribe*s
revolving credit program to begin renting some of the cabins. The funds
received from this loan allowed CDC to replace some of the badly worn
furniture and do some repairs to the cabins. At first, CDC contracted with
a travel agency to take reservations and provide housekeeping service. In
1993 CDC took over the reservation service and hired housekeepers and
maintenance. Today, CDC is totally self-sufficient and has 68 rental
cabins at Hawley Lake. The
homes at Hawley Lake are over 25 years old, some of which have never been
completed or are in need of major repair, renovation or demolition. CDC is
committed to improving and maintaining these structures, not only for
rental income but for the overall aesthetics of the Reservation. The
majority of the profits from the rental income are used for improvements,
furnishings, salaries, equipment and vehicles to maintain and improve the
property. It costs approximately $5,000 to $20,000 to make a donated cabin
suitable for rental, plus the cost of furniture, appliances and household
supplies, and linens.

Although it is not CDC*s main function
to operate a cabin rental area, the profits gained from cabin rentals not
only help to improve the Hawley Lake Area, they also enable CDC to provide
employment and make in-kind contributions for grants and affordable
housing to reservation residents.

CDC is engaged in a comprehensive
development program with a long-term goal of improving the economic and
social quality of life on the White Mountain Apache Reservation. The
mission of CDC, has expanded to include the development of low income
housing projects, the management of residential housing rentals, and
business development activities, including property management. These
operations have created both full-time and seasonal employment and
training.

In recent years, CDC has focused mainly
on the issue of addressing the chronic housing shortage on the
Reservation. In 1997 the CDC developed the McNary Housing Project
consisting of 20 newly constructed single-family rent to own homes for low
income families at a total project cost of $1.5 million. The houses were
placed in service in December, 1998.

Last year, CDC applied for and received
federal low income housing tax credit, which along with investment funds,
HOME Funds and a Rural Development Loan constructed a two million dollar
22 unit townhouse project in Whiteriver, providing rent subsidized housing
for low income families. The project was placed in service in January
2002.

This year, CDC again applied for
federal low income housing tax credit, which along with investment funds,
HOME Funds and a Rural Development Loan is expected to build another 22
unit townhome project in Cibecue, Arizona. The project is expected to
begin in October 2002.

CDC applied for and received a grant
from the Department of Health and Human Services ACF for a woodworking and
custom cabinetry program. With the participation of Northland Pioneer
College, the Tribal Skill Center, and other tribal programs, this project
will provide hands-on training and career opportunities to several
unskilled and unemployed persons. This program is extremely important due
to the number of displaced workers as a result of the Rodeo-Chedeski
Fire.

In conclusion, CDC is committed to the
long term goal of creating housing, employment, training, community
services and education for the White Mountain Apache
Tribe.